Corporate Clients Take To Private Aircraft

[Ken K. Kour 0]

Corporate clients take to private aircraft

 

July 5 2006

 

TO MOST travellers, flying on scheduled commercial flights is no longer a pleasurable experience but a necessary evil that one has to endure to get from one destination to another.

 

Flight delays, lost luggage, cramped seating and tight airport security are some of the infamous problems associated with commercial flights.

 

Where business is concerned, these hassles can also lead to reduced productivity. An executive who is waiting eight hours at the airport for a connecting flight is not contributing to the company's bottom line.

 

What is the alternative?

 

For those who can afford it, the answer is chartered air services, be it in the form of private jets, light aircraft or helicopters.

 

Department of Civil Aviation (DCA) director-general Datuk Kok Soo Chon says Malaysia's general aviation sector, which includes air charter services, has experienced a tremendous quantum leap over the last two years.

 

This can be seen from the increased numbers of air service permits (ASPs) given to companies to carry out general aviation activities.

 

Compared to only 16 ASPs two years ago, the total number of permits issued so far has gone up to 20. Another 11 approved applications and 17 new applications are being processed.

 

"The increasing numbers of ASPs indicate a strong growth in demand for general aviation services. Maintaining and operating aircraft is costly. I don't think companies would simply commit themselves to this if they don't think that it would be a viable business," he said.

 

Kok attributed the growth in this sector largely to the increasing economic activities taking place in the country.

 

For example, more activities such as oil exploration and project site visits have created a surge in demand for charter helicopter services.

 

"As society becomes more affluent, naturally there will be demand for more personalised services like this. Companies are willing to pay extra for the flexibility in determining their own flight schedules and destinations.

 

"From a business point of view, charter services would help companies save time and this, in turn, will translate into higher productivity and cost savings," he added.

 

Large corporations such as YTL group and Naza Holdings have already subscribed to this service not only to fly senior managers and executives, but also to take clients and media representatives to view their project sites.

 

Weststar Aviation Sdn Bhd, a subsidiary of Weststar Holdings, is one operator that has frequent dealings with corporate clients. One of its biggest customers is utility company Tenaga Nasional Bhd.

 

A spokesperson for Weststar Aviation said Tenaga Nasional engages its services almost every weekend, either to transport its VIPs or to check power lines across the country.

 

Systematic Aviation Services Sdn Bhd chief executive officer Ismail Asha'ari, meanwhile, said demand for charter services at the moment is still largely driven by corporate and business usage.

 

This is mainly because travelling via charter is more expensive compared to commercial flights.

 

A return Kuala Lumpur-Langkawi trip on a 10-passenger aircraft may cost somewhere around RM5,000 (or RM500 per passenger) - costlier compared to what AirAsia is charging.

 

"For normal travellers, the price tag may seem a bit hefty. However, one must realise that the convenience and comfort that comes with the service is priceless.

 

"There is definitely room for improvement to encourage more leisure travellers to switch to this particular service. Maybe travel agents and other relevant players could play a more aggressive role in helping to create the awareness," he added.

 

The growing use of aerial services for purposes other than transportation has also contributed to the growth of this business.

 

Surendra Singham, managing director of Aerohawk Air Sdn Bhd - formerly known as Skytolet - said his business was more focused on advertising and marketing.

 

Initially, under Skytolet, the company operated a sky banner for ntv7. Now its helicopter charter services are primarily used by Astro for its daily traffic reports as well as to fly radio DJs to attend functions.

 

"As you can see, the main focus of our business here is more on marketing and advertising, and not so much on transporting people.

 

"The demand for this sort of services is growing. Business people are getting more creative on how to market their services and products. However, the problem at this moment is that demand exceeds supply," he added.

 

Entrepreneur Tengku Mohd Firman Tengku Farris, who runs a 40ha horse ranch in Gurun, Kedah, admits to having subscribed to charter services to market his equine-park business.

 

He said the company engaged the services of an aviation company to capture an aerial video of the ranch.

 

"The ranch is huge. Some clients may not have time to spare to tour the whole area. I think the best solution for this type of clients is to present them with an aerial video clip of our entire ranch.

 

"In business one has to be creative. You need to use whatever tools available to effectively market your product and services. You just can't be conventional," he added.

 

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Copyright © The New Straits Times Press (Malaysia) Berhad, Balai Berita 31, Jalan Riong, 59100 Kuala Lumpur, Malaysia.

 

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What Are Your Views on Travelling?

[Adrian M 0]

 

A return Kuala Lumpur-Langkawi trip on a 10-passenger aircraft may cost somewhere around RM5,000 (or RM500 per passenger) - costlier compared to what AirAsia is charging.

 

 

Maybe thats the actually price for an air ticket for MAS if part of the percentage wasn't subsidised by the gov.

 

But flying on charter is not a bad thing too.

[Pieter C. 5]

Voted 'by choice'

 

Another advantage is, clients can set their own schedule this way, and are not 'forced' to fly schedules set by the airlines...also smaller airfields are reachable

[Seth K 3]

Corporate clients take to private aircraft

A return Kuala Lumpur-Langkawi trip on a 10-passenger aircraft may cost somewhere around RM5,000 (or RM500 per passenger) - costlier compared to what AirAsia is charging.

Interesting, only 500, I should try this

[BC Tam 2]

Interesting, only 500, I should try this

Bear in mind the 'bargain' of RM500 only applies if the chartered flight is full with 10 pax. If 'unlucky' enough to be only pax, it translates to RM5,000 for KUL-LGK !!

[Seth K 3]

My dad ride charter flights/helicopter everyday. He said, it's good if ur travelling with workers so you can discuss work easily and time not waste while flying- one second worth millions. But if flying alone or with not know people from same company, it's not fun because you can't feel the flying joy, so when come to that case, he prefer comm. flight. I once flew with him, it's not that fun You know what they talk onboard, money money money Charter flight is fun when the whole flight you with someone you know(eg. family, frens etc.)

[Ken K. Kour 0]

anyone here that might be attending a graduation party or formal or prom or something

 

 

a chartered helicopter might be the next big thing for rich kids to make an entrance..

 

whereas nowadays its getting a limo.. right imran

[Attan 0]

Bear in mind the 'bargain' of RM500 only applies if the chartered flight is full with 10 pax. If 'unlucky' enough to be only pax, it translates to RM5,000 for KUL-LGK !!

 

For RM500 per head I can fly 3 of you KUL to LGK and back in a C172